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 Chapter 13: Selected Fringe Benefits
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          Rail Employer Reporting Instructions (RERI)
          Part IV - Particular Types of Compensation Payments
          Chapter 13: Selected Fringe Benefits
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              Part I - Prerequisite Knowledge for Rail Employer Reporting
          Part II - Establishment of Employee Records
          Part III - Principles of Service and Compensation
          Part IV - Particular Types of Compensation Payments
                                Chapter 01: Regular Earnings
          Chapter 02: Miscellaneous Compensation
          Chapter 03: Sick Pay
          Chapter 04: Vacation Pay
          Chapter 05: Back Pay
          Chapter 06: Pay for Time Lost
          Chapter 07: Separation/Severance Payments and Dismissal Allowance
          Chapter 08: Guarantee Payments
          Chapter 09: Contract Services
          Chapter 10: Various Non-Routine Payments
          Chapter 11: Compensation for Multiple Employers
          Chapter 12: Exclusions to Creditable Compensation
          Chapter 13: Selected Fringe Benefits
          Part V - Reports of Creditable Service and Compensation
          Part VI - Reports Related to Service and Compensation
          Part VII - Additional Communications about Service and Compensation Reports
          Part VIII - Employer Reporting System (ERS) Internet User Instructions
          Appendices Chapter 13: Selected Fringe Benefits
							 
							
							
            pdf iconRERI-Part IV_CH 13 (33.03 KB)
      
            **Group Term Life Insurance**

The cost of group term life insurance is considered compensation under the Railroad Retirement Act to the extent that it is included in the gross income of an employee and subject to Railroad Retirement tax. The cost of group term life insurance with respect to periods within an employment relationship is treated the same as ordinary compensation creditable for both Tier I and Tier II purposes.

**Group Term Life Insurance Reported on an Earned Basis**

If compensation is reported on an earned basis, the cost of the group term life insurance with respect to periods after the termination of the employment relation should be reported to the month the employment relation ended, up to the applicable annual Tier I and Tier II maximums. If the maximum creditable Tier I amount has been received, additional amounts would be considered miscellaneous compensation under the conditions described in Part IV, Chapter 2.

**Section 125 Cafeteria Plan**

Cafeteria plans (flexible benefit plan) are benefit plans under which all participants are employees, who can choose from among cash and certain qualified benefits. If the employee elects qualified benefits, the employer contributions are excluded from creditable compensation. However, if an employee elects to receive cash instead of any qualified benefit, the cash payment is creditable compensation.

**Section 401(k) Plan or Section 457 Plan**

Employee contributions to Section 401(k) or Section 457 salary reduction plans are considered creditable railroad compensation at the time of contribution. Employer matching contributions are not considered compensation.

**Authority Over Tax Questions**

Representatives from the Railroad Retirement Board have no authority to give definitive answers to railroad retirement tax questions. Questions regarding railroad retirement taxes should be directed to the IRS at (913) 345-5622.
        ‹ Chapter 12: Exclusions to Creditable Compensation | 
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 Last updated: 06/02/2017